Equity method investment movement
for the six months ended on June 30, 2017 is as follow:

June
30, 2017

December
31,2016

Capital
increase

Loss on investment

Impairment
loss

Foreign
currency translation adjustments

June
30, 2017

Wecast Internet

(i)

132,782

-

(57,644

)

-

4,771

79,909

Hua Cheng

(ii)

364,897

-

(19,192

)

-

8,511

354,216

Shandong Media

(iii)

-

-

-

-

-

-

Total

$

497,679

-

$

(76,836

)

-

$

13,282

$

434,125

(i)

Investment in Wecast Internet

In October 2016, the Company’s
subsidiary, YOU On Demand (Asia) Ltd., invested RMB1,000,000 (approximately $149,750) in Wecast Internet Limited (“Wecast
Internet”) and held its 50% equity ownership.

(ii)

Investment in Hua Cheng

As of the period ended June
30, 2017 and December 31, 2016, the Company held 39% equity ownership in Hua Cheng, and accounted for the investment by the equity
method.

(iii)

Investment in Shandong Media

As of the period ended June
30, 2017 and December 31, 2016, the Company held 30% equity ownership in Shandong Media, and accounts for the investment by the
equity method. The investment was fully impaired as of June 30, 2017 and December 31, 2016.

9.

Stockholders’ Equity

On July 6, 2016, the Company
entered into a Common Stock Purchase Agreement (the “SSW SPA”) with Seven Stars Works Co., Ltd., a Korea company (“SSW”)
and an affiliate of SSS. Pursuant to the terms of the SSW SPA, the Company has agreed to sell and issue 2,272,727 shares of the
Company’s common stock for $1.76 per share, or a total purchase price of $4.0 million to SSW. A total of $4.0 million was
received and 2,272,727 shares were issued on July 19, 2016.

On August 11, 2016, the Company
entered into Common Stock Purchase Agreement (the “Harvest SPA”) with Harvest Alternative Investment Opportunities
SPC (“Harvest”), a Cayman Islands company. Pursuant to the terms of the Harvest SPA, the Company has agreed to sell
and issue 2,272,727 shares of the Company’s common stock, for $1.76 per share, or a total purchase price of $4.0 million
to Harvest. A total of $4.0 million was received and 2,272,727 shares were issued on August 12, 2016.

On November 11, 2016, the Company
entered into Common Stock Purchase Agreement (the “SSSHKCD SPA”) with Sun Seven Stars Hong Kong Cultural Development
Limited, a Hong Kong company (“SSSHKCD”) and an affiliate of SSS. Pursuant to the terms of the SSSHKCD SPA, the Company
has agreed to sell and issue 1,136,365 shares of the Company’s common stock for $1.76 per share, or a total purchase price
of $2.0 million to SSSHKCD. A total of $2.0 million was received and 1,136,365 shares were issued on November 17, 2016.

As described
in Note 12, the Company and SSS entered into a series of agreements, including an agreement pursuant to which the Company agreed
to sell and issue 4,545,455 shares of the Company's common stock and warrants to acquire an additional 1,818,182 shares (at an
exercise price of $2.75 per share) for an aggregate purchase price of $10 million to SSS.

On May
19, 2017, the Company entered into a subscription agreement with certain investors, including officers, directors and other affiliates
of the Company, pursuant to which the Company issued and sold to such investors, in a private placement, an aggregate of 727,273
shares of the common stock of the Company, for $2.75 per share, or a total purchase price of $2.0 million. Investors in the private
placement included Lan Yang, the wife of the Company’s Chairman Bruno Wu, and China Telenet Ventures Limited, an entity owned
and controlled by Sean Wang, a member of the Company’s Board of Directors. As of July 18, 2017, all subscription amounts
have been received by the Company.

10.

Fair Value Measurements

Accounting standards require
the categorization of financial assets and liabilities, based on the inputs to the valuation technique, into a three-level fair
value hierarchy. The various levels of the fair value hierarchy are described as follows:

·

Level 1 — Financial assets and liabilities
whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that we have
the ability to access.